Some Singaporeans are anxious about borrowing. Considering their low salaries, they do not think they will get accepted. The reality is that most moneylenders need a minimum income to be sure they could be paid.
In line with this, some borrowers may opt to choose Flexi Loan to tide them up for a period of time. This type of loan is flexible in terms of tenure, interest rates and loan limit. This article will tackle how Flexi Loan can help you get the quick cash you need during difficult times.
What is a Flexi Loan and How it works?
But what if there is a way? The loan flexi easily meets customers’ immediate financial needs. This is a type of personal loan in which lenders provide their customers with a pre-approved loan limit which is credited to their loan account or bank account and can be used as and when required by them.
Furthermore, this personal loan provides the customer flexibility of repayment as and when he/she pleases without incurring any additional charges or interest payments.
Additionally, for Singaporeans and permanent residents who earn less than S$20,000, there are some moneylenders that offer flexible loans for personal loans. This sum fits people who earn a low amount of income.
In summary, flexi loan accounts provide three of the most appealing features that are unique. Within the credit limit offered by the lender, you can withdraw the required loan amount as much required. It is a type of overdraft facility where customers can withdraw the amount required when cash is needed for contingencies management. A borrower can prepay the borrowed amount as per the convenience of themselves.
Lastly, no matter how much amount the lender has approved, the interest rates will be levied only on the amount withdrawn from the bank account. The amount of balance is not accruing interest.
Since the eligibility criteria vary from one lender to another, therefore, to know the exact details contact the lender from where you want to avail the money and to know more information.
When should you get a Flexi Loan?
As a borrower, it means you are able to use it in any way you see fit. You can choose to use it for a home loan to pay bills, purchase apparels, or even use the money for a quick investment. This type of loans can be used for a vast variety of use, even to a point of upskilling yourself by attending a much-needed course.
Being a low-income earner doesn’t mean that you don’t have the right to get opportunities. Use this as an instrument to get a better income. Whatever you need is for you, this will provide you with the flexibility to do so.
Advantages of using Flexi Loans
We listed the advantages of using a Flexi Loan, read below how it can help you solve your financial crisis during difficult times.
Flexi Loan Is Multi-Purpose
This can be used for any purpose. This personal loan allows you to use it in any way that you want. You may use it to make purchases for groceries, pay for your bills, credit cards bills and even for your home loans. It can also help you achieve rare opportunities like funding investments accounts. When you want to get new employment or upscale your career by learning new skills.
This personal loan can be useful to enable you to enroll in some needed training classes. You are also able to fund your home loan on the side. Having a low income does not mean opportunities are closed out for you. Make use of flexi as a means to help increase the amount of your income.
Ease your Financial Dilemma Quickly
It can be quite discouraging when you lie in bed thinking about how you will make it through the next day. Managing on an empty bank account and the next salary will be coming in a few days. Financial gaps cause a lot of people to experience a lot of stress. This makes them rather anxious and in particular when a sudden need for their kid’s medical arises.
Flexi loan and a personal loan can help you bridge the gap and also give you some hope. It relieves the stress when you can pay the medical bill not catered for by insurance. Assuming you got yourself insurance and the policy requires that you pay up for the bills first then it reimburses you. This is when a loan account can be useful in paying the incurred bills.
Helps in Rebuilding Credit Score
When you apply for a Flexi loan, it will help change the “no credit history”. Certainly, this is regardless of the amount you are currently earning. It is advisable to maintain your bank account credit score in good shape.
Good credit scores are very important when applying for loans. When moneylenders see that your credit history is outstanding, you will easily have approved. You can also be able to get a much higher loanable amount, however, always to keep in mind to only apply for a loan amount you are sure you will pay off.
Work towards keeping a good relationship with moneylenders and always ensure to make your repayments in good time to avoid loan interest and other unnecessary interest.
It Is The Best Choice Of Credit?
When getting cash, you have many choices available to you. You may decide to pawn your personal belongings like pieces of jewelry. However, when you fail to repay the personal loan, you risk losing the items you will have pawned. Pawning may not be possible when you have no items to pawn.
You could, however, borrow from your friends and family. More often than not, you won’t be charged for the interest rate. You will be lucky when someone does lend you on short notice. Even then, you will be risking that relationship as it’s hard to face the person. Especially since they will remind you of the money you owe them.
When that happens that you have no one to turn to, applying for a Flexi loan would be the best choice. The Flexi loan is easy to access, convenient and fast and in particular when you apply online.
The Common Misconception of Flexi Loans
Flexi Loan is a great option to many borrowers, however there are still misconceptions regarding this type of loan that makes others choose other available loans. Below are the most misconceptions faced by many borrowers.
Flexi Loan is not for Everyone
Flexi personal loan is for everyone. As mentioned, this can be used to help you gain new skills, just like beginning a company based at home. You don’t have to be in an emergency to apply for a loan. But a personal loan may help you improve your financial status, instead and give you the skills needed to do so.
Flexi Loan Increase Debts
A flexi loan could have interest charges, which is understandable. When an approved moneylender offers you this loan, you can get a loan that suits your current finances. A prudent lender should not be investing money that the creditor cannot get paid for.
Additionally, you can avoid possible penalties if you meet the repayments consistently.
Borrow More Get More
How some people think is that to be approved for a loan, they have to borrow more. It is your ability to pay that moneylenders really consider. Lend what’s not beyond your budget. The higher the amount you borrow, the higher the interest rate you may have to pay back. Always borrow with the mind of, “Is this within my means of repaying”.
Things to Look Out For Before Applying
For those who are looking for a quick loan but feel that because you are under the low-income category, you are ineligible to obtain a loan through proper channels, please do not feel so. Flexi through a proper licensed moneylender can help your needs.
One must be wary taking quick loans from an illegal moneylender, which potentially could be loan sharks. Most of them tend to target low-income individuals and desperate individuals who need immediate cash. All registered moneylenders will basically have a license number provided by the Law Ministry.
Here are some quick tips on how to differentiate a licensed moneylender vs. an illegal one.
Legitimate moneylenders also do not use mobile numbers when it comes to their advertisements. All legitimate moneylenders must use their phone numbers when posting their details on their website and other key areas, as well as when they contact clients.
- Legitimate moneylenders do not ask clients to meet them face-to-face or provide income documents during these meetings. Clients simply have to apply through the moneylender’s website and wait for their appointment with the moneylender in their office before you can bring the necessary requirements.
- Legitimate moneylenders also do not keep personal information of clients’ accounts or their documents.
- Legitimate moneylenders also do not ask sensitive information such as SingPass for loan applications.
Flexi Loan – Getting Best For You
This is very effective and can be used the way the borrower wants to. In addition, they can offer the borrower maximum adjustability in using the amount and the options for repayment.
If any client has multiple loans from the same financial institution then the client can opt to consolidate the debt. In debt consolidation, borrowed money that is easier to pay off is consolidated into single multiple borrowings. This is a simple way to efficiently handle investments.
When you’re looking for a moneylender who can support you with a flexi or any other loans, it’s a must you check the moneylender history you are considering before sharing specifics with them. Understanding the history of your potential moneylender will tell you a lot about their reputation and whether you are working with a reputable moneylender.
Therefore, if you want to get the best options, visit Loan Advisors, a loan comparison site in Singapore.